The UAE has issued new tax rules for Free Zones, expanding qualifying activities for commodities.
Abu Dhabi: The UAE Ministry of Finance has announced new corporate tax rules for businesses operating in the country’s Free Zones. The update comes through Ministerial Decision No. 229 of 2025, which replaces the earlier Decision No. 265 of 2023, offering greater clarity and scope for Qualifying and Excluded Activities under the Corporate Tax regime.
One of the key changes is the expanded definition of “Qualifying Commodity Trading” to include a wider range of goods. This now covers industrial chemicals, environmental commodities, and by-products associated with metals, minerals, and energy trading. The previous limitation requiring commodities to be in “raw form” has been removed.
This development is expected to benefit companies involved in energy, mining, agriculture, and industrial chemical sectors operating from Free Zones. The changes also align with the UAE’s goals of promoting economic diversification and encouraging more advanced trading activity within regulated tax environments.
In parallel, Ministerial Decision No. 230 of 2025 was issued to outline the Specification of Recognised Price Reporting Agencies, enhancing transparency and compliance under the tax framework. Additionally, the latest guidance provides further clarification on treasury and financing services for Related Parties.
With these updates, the Ministry aims to create a more competitive and investment-friendly tax environment while ensuring compliance with international standards. Businesses operating in Free Zones are encouraged to review the updated rules to assess how their operations align with the revised criteria for Corporate Tax exemptions.
